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SALT Cap Workarounds Forced IRS Hand On Charity Programs

By Maria Koklanaris · August 24, 2018, 6:41 PM EDT

Blue state workarounds to the $10,000 cap on state and local tax deductions effectively forced the hand of Treasury and the IRS, causing them to adopt a quid pro quo approach to all state charitable contribution programs, even those that flew under the radar for years.

In the past, the Internal Revenue Service generally looked the other way when individuals donated to state charitable programs, received state tax credits, then took federal income tax deductions. (AP) With the quid pro quo approach proposed Thursday, the Treasury...

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